Because marginal cost is always ________ in the short run, total variable cost always ________ when output increases.
A) positive; increases
B) positive; decreases
C) negative; increases
D) negative; decreases

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one more unit of a good. In the short run, it is always positive because producing additional units incurs additional costs. Therefore, as output increases, total variable cost, which includes costs that vary with the level of output, also increases.

Because Marginal Cost Is Always ________ in the Short Run